Question $1$

An equipment at MNS Systems costing $$600,000$ was depreciated using the double declining

balance $($DDB$)$ method. In year four, the company decided switch to the straight$-$line

depreciation method. Determine the depreciation charges in year $4.$ Assume a depreciable life

of $10$ years and a salvage value of $$63,331.$

$32,000$

$36,667$

$40,889$

$50,678$

Question $2$

Question $2$ continued

The fourth $-$year taxable income is equal to

$$42,000$

$$51,720$

$$32,750$

$$50,000$